Spanish Real Estate Market: April 2021 News
You can now take off your mask on the beach, Torrevieja will be full of skyscrapers soon and a 17th century tower for sale in Alicante. What’s new?
What has happened to the Spanish housing market over the past month? If you want the latest statistics and local real estate analysis, continue reading!
1. No masks on the beach
Spain's Ministry of Health maintains the requirement to wear a mask in public places within the country, but some restrictions are easen. From April 2021, wearing a mask is no longer mandatory on the beach or in the mountains if you are alone. You can also sunbathe and swim without a mask.
Many bars and cafés are open until 11.30 p.m., which is extremely important in high season. Also on 9 May the "state of alert" (estado de alarma), which has been in force in Spain since 25 October, has ended:
- curfew has lifted or moved to midnight (depending on province).
- Restrictions on movement between Spanish provinces has lifted in most of the provinces.
- The ban on gatherings of more than six people has been lifted in most of the provinces.
- The capacity on public events has been increased.
2. Return on investment: +7,2%
The average rental yield on Spanish properties in the first trimester of 2021 was 7.2% (of property value per year), which is 0.4% lower than a year earlier, as reported by Idealista. Of the capitals, the most profitable is Lerida with 8.4%. They are followed by Murcia (7.9%), Huelva (7.2%), Castellón de la Plana (7%) and Santa Cruz de Tenerife (7%)
Murcia is the leader in return of investment among provincial capitals
Commercial premises bring in an average of 9.3% a year (7.2% for parkings). Offices bring the highest yield (11.1%), popular cities are Seville, Huelva, Toledo. Parkings are most profitable in Avila, Murcia and Castellón.
3. "Golden visas" are no longer the trend?
In the last six months of 2020, Spain issued 162 'Golden Visas', which is a 76% drop on the first half of the year and an anti-record in the history of the programme, according to a report from the Ministry of Migration.
Every third application (34%) is from Chinese investors, (24%) – from Russia. More often foreigners buy property in the province of Alicante, followed by the Balearic and Canary Islands.
4. Torrevieja turns into Benidorm
Torrevieja plans to build 18 skyscrapers (up to 29 floors) on the waterfront in the next ten years. This is reported by El Pais, with reference to the City Council. Most of these buildings will be constructed close to the beach (nine skyscrapers up to 23 floors). It is expected that the complex will be designed so that the skyscrapers will not cast a shadow on the beach. It is also planned to construct two towers with a height of 82 metres next to Doña Sinforosa Park.
Sinforosa Tower project
Eduardo Dolón, mayor of Torrevieja, said that the construction of the skyscrapers does not mean a change in the city's architectural idea. "All the high-rises will make up 40% of the housing stock for tourists. There are barely 13 hotels in Torrevieja at the moment, which is not enough, we need to increase the capacity for tourists, including in the low season. For example, for the sake of sports tourism. Skyscrapers will not be concentrated in one place. Visually, there will not be the same overall impression as in Benidorm. We are not aiming at copying them. The great success of the Costa Blanca is that it has Benidorm and Torrevieja, the two main tourist poles on the coast, which complement each other."
5. Secondary Real Estate: +1.5%
The average secondary property price in April 2021 in Spain is €1784/m², up 1.5% on the year before. Because of the Covid-19 pandemic, some Spanish home buyers have opted for smaller towns and countrysides, so the cost of housing in large cities has fallen. Thus, over the past 12 months the secondary properties became cheaper in the 28 provincial capitals. The largest drop is seen in Girona (-5.8%), followed by Castellón (-5.2%) and Seville (-5.1%). While Huesca (+8.4%), Cuenca (+6.9%) and San Sebastian (+6.8%) showed the maximum increase.
San Sebastian, unlike other major cities, becomes more expensive during the pandemic
Barcelona and Madrid lost less (-2.7% and -0.8% respectively).
6. Villa with a tower in Alicante
In the Albufereta area of Alicante, there is a villa for sale together with La Torre de las Águilas tower, built in the 17th century. Twenty years ago the defensive tower was listed as a good of cultural interest of the province. The tower is a part of an estate with a swimming pool and garden, and the building has retained its historic appearance.
La Torre de las Águilas
The villa is close to the beach (10 minutes walk). The property's surface is over 550m²; it has five bedrooms and four bathrooms. A picturesque palm garden of 2800 m² surrounds the courtyard and swimming pool.